As major tech companies, such as Meta Platforms Inc. and Alphabet Inc., look to reduce payrolls, the middle manager is emerging as a target.
Middle managers are feeling the pressure from both above, where they are being asked to do more with less, and below, where they are navigating new hybrid work arrangements.
A recent survey found that those in middle management are the most exhausted of all organizational levels, with 43% saying they are burned out.
In the tech industry, the belief that the top tech companies only need core engineering teams has been growing, as seen in Elon Musk's recent downsizing of Twitter's workforce.
However, studies have shown that reducing the workforce can result in short-term gains but can lead to long-term problems such as inefficiencies and a lack of productivity.
Peter Cappelli, a management professor at the Wharton School of the University of Pennsylvania, says that many companies are announcing layoffs to appease investors but they don't necessarily lead to efficiencies.
Wayne Cascio, a professor at the University of Colorado Denver Business School, finds that companies that delay layoffs during downturns see higher stock returns two years later than those who quickly shed headcount.
